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IATO SEMINAR TERM OF REFERENCE:
THE OPPORTUNITY AND CHALLENGE OF BIO FUEL
IMPLEMENTATION AND BUSINESS FOR AUTOMOTIVE IN
INDONESIA
I. INTRODUCTION
In the coming year 2020, it is estimated that the energy demand will increase approximately 40 percent from the present demand. The continuity in the use of fossil fuel arises, at least, two serious threats: - Economic factor, in the form of guarantee in the availability of fossil fuel for the next decades, the problem of supply, price, and its fluctuation
- Pollution due to emission from the burning of fossil fuel to the environment.
The pollution created from the burning of fossil fuel has a direct and indirect effect to the degree of human health. Direct pollution can be in the form of dangerous gasses such as CO NOx, and UHC (unburn hydrocarbon), also by metallic element such as lead (Pb). Meanwhile, indirect pollution in majority is in the form of explosion in the amount of CO2 molecule that causes global warming (Global Warning Potential). The awareness concerning those serious threat has intensify various research which are aimed at obtaining energy resources and energy carriers that are guaranteed their sustainability and also more environmentally friendly.
Continuous economic development will always be in line with the increase of mobility of the people, transport of staple goods and also other needs as trade commodities in the national, regional and international level. The automotive industry are known as the industry from industry because of its role in pushing the growth of other industry, its added value, workforce and distribution network so that every policy that affects the automotive industry will have a wide effect on related companies and economic activities.
The donation of Transportation and Automotive Industry towards the growth of economy and welfare is very real, meanwhile in other aspect there are worries from the global community concerning the negative impact of motor vehicle socially and towards the environment, such as : pollution, global warming, accident and traffic problems and also in the decrease of supply of fossil fuel. The increase of price now that is reaching 75 US dollar is considered out of the ordinary since usually the increase of price would not reach more that 60 US dollar and it would happen during winter in countries with four seasons. This problems is considered very complex that President Susilo Bambang Yudhoyono in many opportunities ask the people to conduct saving of fuel throughout the country and optimizing ht use of non fossil fuel.
In the early part of this century, the motor vehicle industry is facing a rapid change, demography and shift of market growth to growing economy, development of new technologies, globalization and harmonization, and also the limit of energy resources and environmental preservation, are among other main items that shaped the face of the industry.
The initiative of the United Nation, European Economic Commission (ECE) has grown to the preservation of environment and liberalization of trade. Indonesia along with other APEC countries has participated in the signing of the Bogor Declaration and also the 1958/1998, UN/ECE WP.29 Agreement on The Principles of Automotive Technical Regulation Harmonization.
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